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Your brewery is much more than just a small businessit’s the fulfillment of your dream to share a love for quality craft beer and beverages. Build success from start-up to expansion with a solid foundation of finance principles geared specifically toward small beverage producers. Learn how to build and interpret financial reports and create basic pro-forma financial statements for launching a brewery, purchasing additional equipment, or determining a new location. Explore the various business models available to you as a craft brewery. Discover pricing models that maximize your profits. Learn how to build a budget and how to use it to hold staff accountable. This book is written to teach complex topics in simple terms. Written in an accessible style, it will help brewery owners and their staff understand the importance of a strong financial foundation. The insights and results-oriented content will help you run a more successful brewery.
|Product dimensions:||8.40(w) x 10.80(h) x (d)|
About the Author
A Certified Public Accountant, Maria Pearman founded Radix Accounting in 2012 to provide accounting expertise and a deep operational knowledge to the alcohol beverage industry. Pearman has also taught for CPA review courses and within beer business programs at Portland State University and the University of Vermont. She resides in Portland, OR.
Table of Contents
TABLE OF CONTENTS
Foreword Acknowledgments Preface 1. From Dream to Reality: A Craft Beer Business Journey 2. Introduction to Financial Management Basic Financial Statement Introduction Accounting: General Structure of Transactions Accrual Accounting versus Cash Basis Accounting Chart of Accounts Internal Controls 3. Balance Sheet and Income Statement Balance Sheet Assets Inventory Fixed Assets (Capital Expenses) Liabilities EquityKey Ratios: Balance Sheet Current Ratio Quick Ratio Accounts Receivable Days Accounts Payable Days Inventory Turnover Industry Benchmarks for Key Ratios Income Statement (Profit and Loss) Cost of Goods Sold (COGS) Accounting for Inventory and COGS Gross Profit Operating Expenses Interest Expense Depreciation Net Income versus EBITDA Key Ratios: Income Statement Gross Profit EBITDA Net Income 4. Cash is King! Cash Reserves Statement of Cash Flows Format of Statement of Cash Flows Steps to Calculate the Statement of Cash Flow Cash Flow Forecasting 5. Interpreting Financial Statements Chart of Accounts Every Statement Tells a Story What the Balance Sheet Shows What the Income Statement Shows Generating Relevant Reports Monthly Financial Review Interpreting Financial Statements Period-over-Period Growth COGS Gross Profit % Payroll % NOI % EXERCISE 6. Finding Breakeven and Costing Beer Breakeven Finding the Accurate Cost of Beer Brewpubs and Taprooms Labor Taproom COGS Tools for Costing Planning and Start-Up Phase Adolescence Maturity 7. Options for Growth Self-Distribution versus Third-Party Distribution Retail versus Wholesale 8. Operating Budget Types of Budgets Sales Budget Production Budget Administrative Budgets Other Budgeting Approaches Conclusion 9. Sources of Capital Debt versus Equity Who Should Invest Four Must-Have Documents When Working with Investors Term Sheet Pro Forma Financials Operating Agreement Subscription Agreement How to Manage Investor Expectations Annual Investor Meetings Quarterly Updates Investor Distributions How to Prepare Pro Forma Financial Reports EXERCISE 10. Business Life Cycle Start-Up Early Stage Adolescence Maturity Exit Employee Stock Ownership Plan (ESOP) Appendix A. What to Include in Your Business Plan Executive Summary Company Description Products and Services Market Analysis Strategy and Implementation Organization and Management Financial Plan and Projections Conclusion Appendix B. Sample Chart of Accounts Brewery Brewery with Restaurant Appendix C. Sample Full Budget Spreadsheet Appendix D. Ten-Week Budget Calendar Appendix E. Sample Term Sheet for XYZ Brewing Company, LLC Appendix F. Choice of Entity/Significant Tax and Other Considerations Glossary Index